Octane Capital and RHL complete £8.5m development exit loan

14-May-2018

'Product-less’ lender, Octane Capital, announced
it has provided an £8.5m development exit loan to a client of RHL, a UK-wide
specialist broker and distributor focused on large and complex commercial and
residential loans.

The loan facility, secured against a completed
46-unit office-to-resi PDR (‘permitted development rights’) scheme in Essex
with a value of £12.3m, also incorporates £1m of equity release for the client
to provide cash flow for future projects.

Following a highly successful marketing
campaign starting in just February of this year, 80% of the units have already
been reserved or exchanged, but the Octane Capital exit loan provides
additional time to sell off the remaining units.

Working on the loan were Laura Brown at
London-based lawyers, Howard Kennedy, Tony Hughes of RHL and Alex Tyrwhitt and
Justin Cooper at Octane Capital. Jim Crafford, partner at Strutt & Parker,
also produced a detailed valuation report at short notice.

The development exit facility is Octane’s
latest loan introduced by RHL. Octane, the UK’s only ‘product-less’ lender,
completed £30m of loans in April, and has loaned over £150m since launch last
May.

Tony Hughes, managing director, RHL, commented:

“Octane were once again the perfect fit for
this particular client. The finance provided has allowed them to move off their
existing development loan, given them a longer marketing period to sell the
remaining units and, crucially, releases a significant amount of equity to
invest into future projects. We’ve secured finance for this client multiple
times through Octane and it has helped us achieve a record month of our own,
arranging in excess of £20m of bridging and commercial finance.”

Mark Posniak, managing director, Octane
Capital, added:

“RHL are a first class introducer whose clients
generally have larger and more complex financing needs, which suits us down to
the ground. Once again, Tony and the rest of the RHL team were professional,
diligent and responsive throughout the whole process and there’s no doubt we’ll
be completing more loans with them in the months and years ahead.”